DPST Cash-Secured Put Strategy
DPST (Direxion Daily Regional Banks Bull 3X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The Direxion Daily Regional Banks Bull 3X ETF seeks daily investment results, before fees and expenses, of 300% of the performance of the S&P Regional Banks Select Industry Index. There is no guarantee the fund will achieve its stated investment objective.
DPST (Direxion Daily Regional Banks Bull 3X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $788.0M, a beta of 3.74 versus the broader market, a 52-week range of 70.64-146.09, average daily share volume of 582K, a public-listing history dating back to 2015. These structural characteristics shape how DPST etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.74 indicates DPST has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. DPST pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a cash-secured put on DPST?
A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike.
Current DPST snapshot
As of May 15, 2026, spot at $102.42, ATM IV 69.88%, IV rank 7.94%, expected move 20.03%. The cash-secured put on DPST below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.
Why this cash-secured put structure on DPST specifically: DPST IV at 69.88% is on the cheap side of its 1-year range, which means a premium-selling DPST cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 20.03% (roughly $20.52 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DPST expiries trade a higher absolute premium for lower per-day decay. Position sizing on DPST should anchor to the underlying notional of $102.42 per share and to the trader's directional view on DPST etf.
DPST cash-secured put setup
The DPST cash-secured put below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With DPST near $102.42, the first option leg uses a $97.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DPST chain at a 28-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 DPST shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $97.00 | $5.15 |
DPST cash-secured put risk and reward
- Net Premium / Debit
- +$515.00
- Max Profit (per contract)
- $515.00
- Max Loss (per contract)
- -$9,184.00
- Breakeven(s)
- $91.85
- Risk / Reward Ratio
- 0.056
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
DPST cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on DPST. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$9,184.00 |
| $22.65 | -77.9% | -$6,919.55 |
| $45.30 | -55.8% | -$4,655.10 |
| $67.94 | -33.7% | -$2,390.64 |
| $90.59 | -11.6% | -$126.19 |
| $113.23 | +10.6% | +$515.00 |
| $135.88 | +32.7% | +$515.00 |
| $158.52 | +54.8% | +$515.00 |
| $181.17 | +76.9% | +$515.00 |
| $203.81 | +99.0% | +$515.00 |
When traders use cash-secured put on DPST
Cash-secured puts on DPST earn premium while a trader waits to acquire DPST etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning DPST.
DPST thesis for this cash-secured put
The market-implied 1-standard-deviation range for DPST extends from approximately $81.90 on the downside to $122.94 on the upside. A DPST cash-secured put lets a trader earn premium while waiting to acquire DPST at the strike price; the strategy is most attractive when the trader is comfortable holding the underlying at that level and IV is rich enough to compensate for the assignment risk. Current DPST IV rank near 7.94% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on DPST at 69.88%. As a Financial Services name, DPST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DPST-specific events.
DPST cash-secured put positions are structurally neutral to slightly bullish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. DPST positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DPST alongside the broader basket even when DPST-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on DPST carry tail risk when realized volatility exceeds the implied move; review historical DPST earnings reactions and macro stress periods before sizing. Always rebuild the position from current DPST chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on DPST?
- A cash-secured put on DPST is the cash-secured put strategy applied to DPST (etf). The strategy is structurally neutral to slightly bullish: A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike. With DPST etf trading near $102.42, the strikes shown on this page are snapped to the nearest listed DPST chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DPST cash-secured put max profit and max loss calculated?
- Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium. For the DPST cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 69.88%), the computed maximum profit is $515.00 per contract and the computed maximum loss is -$9,184.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DPST cash-secured put?
- The breakeven for the DPST cash-secured put priced on this page is roughly $91.85 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current DPST market-implied 1-standard-deviation expected move is approximately 20.03%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a cash-secured put on DPST?
- Cash-secured puts on DPST earn premium while a trader waits to acquire DPST etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning DPST.
- How does current DPST implied volatility affect this cash-secured put?
- DPST ATM IV is at 69.88% with IV rank near 7.94%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.